Commercial Lease Agreement Templates

This Commercial lease agreement form allows the landlord to lease out a space for retail, office, or industrial use, while the tenant pays rent based on the price per square foot ($/SF) in addition to any triple-net (NNN) expenses.Triple-net expenses typically include property taxes, insurance, and maintenance costs, which are all passed on to the tenant. The duration of a commercial lease is usually 3-10 years, with options to renew the lease at per-determined rates.

Last updated April 23rd, 2024

This Commercial lease agreement form allows the landlord to lease out a space for retail, office, or industrial use, while the tenant pays rent based on the price per square foot ($/SF) in addition to any triple-net (NNN) expenses.Triple-net expenses typically include property taxes, insurance, and maintenance costs, which are all passed on to the tenant. The duration of a commercial lease is usually 3-10 years, with options to renew the lease at per-determined rates.

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A Commercial lease agreement form is a legally binding contract that outlines the terms and conditions of a rental arrangement between a landlord and a tenant for a commercial property.

1. How to Lease Commercial Rental Property?

2 Options:

  1. Hire a Broker
  2. For Lease By Owner

2. How to Process Rental Inquiries?

Property owners will know who is seriously interested in renting the Commercial Rental Property by potential Tenants requesting to see the property in person (property showing).

3. How to Screen Tenants?

screen-tenants

There are five ways Landlords can screen potential Tenants to see if they are a good fit for the Commercial Rental Property for Lease:

  1. Commercial Lease Application
  2. Copy of Drivers License
  3. EIN (business)
  4. Previous two years of business tax returns (IRS Form 8879-S or IRS Form 1120S)
  5. Previous two years of personal income tax returns (IRS Form 1040).

Screening Services:

Individuals – MySmartMove (TansUnion)

Businesses – Dun & Bradstreet

 

Definitions

Commercial Property – Buildings and Land used for profit generation, including office buildings, medical centers, hotels, malls, retail stores, multifamily housing buildings, farmland, warehouses, and garages.

Commercial Lease/Tenancy – Nonresidential tenancy for property by for-profit entities.

FAQs

Q. What is the penalty for breaking a Commercial Lease Agreement?

A. Usually, Commercial Leases do not have early termination rights, so Landlords usually require 3 to 6 months of pre-paid rent plus unamortized costs.

Q. What are outgoings in Commercial Leases?

A. Operational and maintenance costs.

Q. How much is a Commercial Lease Bond?

A. Depending on credit score, usually 2-3% of the policy coverage amount annually.

Q. Do Commercial Tenants have the same rights and protections as Residential Tenants? 

A. Unlike Residential Tenants, Commercial Tenants are bound to the statutory rights and protections outlined in the Lease Agreement.

Standard Commercial Lease Agreement Form Sample

Commercial Lease Agreement